In the late 1800s, about 30% of Ethiopia was covered with forests. Over time, people cleared land for farming and cut trees for fuel, which caused the forest area to decrease. Today, less than 4% of Ethiopia’s land is covered with forests. The northern highlands have very few trees, but about 45,000 square kilometers of dense forests remain in the southern and southwestern highlands. These forests include coniferous trees, which grow above 1,600 meters, and woodlands in drier areas of the highlands and nearby regions.

Lumber from coniferous forests is used in construction. Broadleaf evergreen forests provide timber for building and making plywood. Woodlands are a major source of firewood and charcoal. Certain trees, such as boswellia and commiphora, are important because they grow in dry areas and produce gums used to make frankincense and myrrh. A type of acacia tree is a source of gum arabic, which is used in adhesives, medicines, and candy. Eucalyptus trees, introduced in the late 1800s, are grown near cities and used for poles, handles, furniture, and firewood. They also provide materials for fiberboard and particleboard.

Information about how much forestry contributes to Ethiopia’s economy is not easily available, as data on forestry, fishing, and hunting are often combined. In 1980/81, forestry accounted for 2.5% of GDP using a standard calculation from 1960/61 and 5.4% of the agricultural sector’s share.

Before 1974, about half of Ethiopia’s forestland was owned by private individuals or claimed by them, and the other half was controlled by the government. The government had little control over forestry before the Ethiopian revolution. In 1975, a land reform took over forestland and sawmills, which were mostly in the south. The government managed forest harvesting, and in some cases, people needed permits from local peasant associations to cut trees. However, this led to illegal logging and faster forest loss. To follow government policies on land use, reforestation efforts were organized through the Ministry of Agriculture and Rural Development or local offices. These groups planned, coordinated, and monitored the work, but peasant associations did not have decision-making power.

Reforestation

Reforestation programs in Ethiopia led to the planting of millions of seedlings in community forests across the country. Many Non-Governmental Organizations (NGOs) worked with local peasant associations to support government efforts in restoring Ethiopia's forests. However, some people argue that both the government and NGOs focused on using shared resources instead of addressing individual needs. Because of this, reforestation programs had limited success. Seedling survival rates ranged from 5% to 20% in some areas and reached 40% in others. These differences were often due to not enough care and people cutting trees too early. In late 1990, Addis Ababa began planning the Ethiopian Forestry Action Plan (EFAP) to help protect woodlands, involve more people in reforestation projects, and stop the loss of existing forests. It was unclear if this plan would improve Ethiopia's forests.

Some protected and reforested areas in Ethiopia include:

• Addi Lihtsi Exclosure, near the village of Addi Lihtsi
• Addi Meles Exclosure, near the village of Migichi
• Addilal Exclosure, near the village of Addilal
• Afedena Exclosure, near the village of Afedena
• Ch'elaqo Exclosure, near the village of Ch'elaqo
• Des’a Forest
• Gemgema Exclosure, near the village of Tsigaba
• Guassa Community Conservation Area
• Harenna Forest
• Hugumburda Forest
• Kidmi Gestet Exclosure, near the village of Gestet
• Lafa Exclosure, near the village of Lafa in Mizane Birhan municipality
• May Anishti Forest
• May Be'ati Exclosure, near the village of May Be'ati
• May Genet Exclosure, near the village of May Genet
• May Hib'o Exclosure, near the village of Addi Lihtsi
• Menagesha Forest
• Mi'am Atali Exclosure, near the village of Mi'am Atali
• Sesemat Exclosure, near the village of Tahtay Sesemat
• Sheka Forest
• Togogwa Exclosure, near the village of Togogwa
• Tukhul Exclosure, near the village of Tukhul, in Addi Azmera municipality
• Yayu Biosphere Reservation
• Ziban Dake Exclosure, near the village of Didiben

Deforestation

In the year 2000, Ethiopia had 4,344,000 hectares of natural forest area, which covered 4% of the country's total land area. Ethiopia's rate of deforestation is similar to other countries in East Africa. However, the overall deforestation rates in East Africa are the second highest in the entire continent. Additionally, Ethiopia has the smallest portion of its forest area set aside specifically for conservation purposes. Except for countries in Northern Africa, East African nations experience the second highest rates of decline in their conservation forests.